This course aims to familiarize students with the main problems studied by Microeconomics. It is intended that students have a basic understanding of the behavior of individual consumers and firms, as well as the operation of various types of markets and the effects and reasons for state intervention.
Duarte Miguel Machado Carneiro de Brito
Weekly - 3
Total - 42
No prior knowledge of Economics required.
Mata, José, 2000, Economia da Empresa, F. Calouste Gulbenkian, Lisboa.
Samuelson, Paul e W. Nordhaus, 2005, Microeconomia, 18ª Edição, McGraw-Hill.
Frank, Robert, 2003, Microeconomics and Behavior, 5ª Edição, McGraw-Hill.
Varian, H., 2009, Intermediate Microeconomics, W. W. Norton & Company
Henriques, D. e Teresa Vasconcelos e Sousa, 2011, Introdução à Microeconomia - Livro de Exercícios, Escolar Editora.
Theoretical lessons presented by the instructor, followed by the resolution of practical exercises.
TWO ALTERNATIVE METHODS:
a) Two midterms, each accounting for 1/2 for the final evaluation; each midterm covers only the part of the material not evaluated in other midterm, although possibly involving concepts given throughout the semester. Minimum grade of 9.5 points (out of 20) is needed for approval.
b) Final Exam, worth 100% of the final grade. Minimum grade of 9.5 points (out of 20) is needed for approval.
1. Presentation and motivation.
2. Modeling the functioning of markets: Determinants of demand and supply of a good. Elasticities. Welfare. Market Equilibrium. State intervention in markets: Taxes, subsidies, price controls.
3. From the consumer theory to the demand function: budget constraint, preferences, utility and optimal choice. 4. From the theory of firm to the supply function: production function and cost curves for short and long term.
5.The model of Perfect Competition. Balancing short and long term. Market equilibrium and efficiency.
6. Monopoly theory. Effects on welfare. Monopoly and price discrimination.
7. Main market failures. Public goods. Externalities.
8. Game theory and oligopoly: simultaneous and sequential games. Models of competition in quantities.
Programs where the course is taught: